Supply chains Flashcards
What does a supply chain consist of?
The group of firms that are involved in all the various processes required to make a finished product or service available to the customer.
Explain why Price is a factor when choosing supplier.
Firms have to decide how much they are willing to pay and whether cost is their first priority.
If they want to cut down the time it takes to serve customers…
suppliers that offer faster delivery may rate higher than those that compete on price alone.
Cheaper suppliers will often…
supply lower quality products.
Firm needs to balance reduced costs with the…
quality of the product or service it wants to provide.
Why is Quality a factor when choosing suppliers?
Quality of supplies needs to be consistent.
The growth of the internet means that…
(quality factor)
customers can be much more selective about quality.
Customers will associate poor quality with the business they buy from, not their suppliers.
If a supplier lets a firm down…
that firm may not be able to supply its own customers.
